Vol. 529 No. 1
428 Mr. McGrath asked the Minister for Agriculture, Food and Rural Development if the 5.055% reduction in farm retirement pensions, which occurred in 1999, has been paid in full for 2000 to farmers participating in the scheme; if this money was paid by the EU; the total amount of these arrears; if this amount is the full payment due to farmers by way of compensation; and the reason farmers still have a shortfall in their pensions in 2001. [2189/01]
The rate of pension paid under the previous scheme of early retirement from farming was expressed in ECUs. The revaluation of the Irish pound on the introduction of the euro in January 1999 resulted in a reduction of some 5.05% in the rate of pension. While the reduction in the rate is permanent, the Council of Ministers approved a three year scheme of compensation. During 2000, full compensation was paid to all participants in the scheme whose payments had been reduced during 1999.
On 12 January 2001, the European Commission gave approval for payment of compensation in respect of reductions in payments during 2000. Compensation is set at 75% of the loss incurred and the total amount approved for Ireland is £2.63 million. One third of this will be funded by the EU and the remainder from the Exchequer. Arrangements for payment are being put in place following receipt of the Commission's approval.
The compensation scheme provides for a third payment in respect of reductions in payments during 2001 and approval for this payment will be sought from the European Commission in due course.
